Initial Timeline and Benchmarks
*I've actually already written my business plan and now I'm just sitting on it while I browse the MLS and see what the market is like. Basically, I'm letting the plan age a bit before I run out and act on it. If my plan is too restrictive it's better to know it now rather than later.
Process Goals:
By March 2014- Finish business plan
By April 2014- Start talking to people I know who are involved in the RE market. (Eric, Bruce, Jonathan, Matt, Dominic, Ryan, Josh, Mark, Steve, Tom, Tyler, Peter, Tonya) Tell them about my plans and listen. Build team.
Line up money/partner.
By December 2014- Buy first multi-family home.
2015 to 2020- Continue to acquire properties. Have 10-20 doors by 2020.
Cash flow at least 100/door/month
Once I’ve established a track record, confidence, and experience, I’ll expand into the apartment market. This may be before 2020.
Likewise I’ll start to include commercial properties into my portfolio. This will depend on developing my resources to the point at which I have the money and capacity to handle these types of deals.
Comments (2)
@Martin Zawarski I appreciate the comment, but I have to disagree with two of your points. First is of moving my timeline up to this month. Why be so aggressive? Doing a deal just to do a deal seems like a great way to get trapped in a bad deal. I understand that a huge percentage of beginners never get off their duff and just get started, but that's not me. I'm not gun shy. My business experience has taught me that planning for some "think it through" time has always been to my benefit and never to my detriment. My end of year goal is deliberately conservative, but I'm not averse to being more ambitious if the opportunities are there. I wouldn't mind buying 3 or 4 properties this year if I find the money and the deals. The other thing is that all of those people I listed are people who I know on a personal level and are in the RE business in one capacity or another. Writing them all off with no knowledge of who they are, what they do, or my relationship with them is premature. And even if they are "only concerned with helping themselves out" it's still worth my time to talk to them, share my ideas, and listen to their perspective. I'm willing to bet that your team is more than just you. I mean, you don't find all of your prospective deals, pay all cash out of your own pocket, do all the rehab by yourself, and manage each property personally do you? Not to mention do your own taxes, insurance, and legal paperwork? In which case you do have a team, you have people who provide services which contribute to your success. If you truly are a one man show, best of luck to you, but I don't have the resources, skills, or time to do that. Plus I've already had experience with building teams and it is so much better and easier than doing everything myself.
Morgan Blackmore, about 10 years ago
Morgan, Good start. Make it better by moving your timelines up a bit. In fact try to acquire your first home in the next month. My team is three people, ME, MYSELF and I. I was very nervous about buying my first home and I have been in this business forever. Now I am not gun shy at all. Today I turned in 2 offers on one property and one offer on another. On the 2 offer property, it is an estate sale and I did an all cash low offer and a full price offer with owner financing. HUMMMMMM. The second is a foreclosure on a condo in a 4 unit building that I designed and built in 1984. It is in a 40 unit complex. Oh the memories of days of old! All the people listed probably won't help you too much, they are only concerned abut helping themselves out. I have found that out. But read what people are doing here, see what you think suits you the best and do it. You may find you may have to change directions and that is ok. I tried several things since the builders crash of 2006. It only took me 6 years to figure out what I need to do. Stupid me ----a waste of 6 years of not liking what I was doing. But I am a buy and hold investor. I have bought 8 homes since Jan 1 2013. I listen to all the blogs and draw upon them for knowledge and to determine if what I am doing is the right thing ---for me. But anyway, good luck and above everything else HAVE FUN with whatever you do.
Martin Zawarski, about 10 years ago